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IncentivizedModifications™
Loss Mitigation Solutions and Principal Reduction Modifications
Must Have True Incentives for the Borrower, Lender, Servicer and Investor,
Otherwise the Mortgage Industry & Economy Will Suffer.
News - 2008: Principal reduction or forgiveness modifications started to get some traction about June 2008. On June 17, 2008, Richard Ivar Rydstrom, Esq., Chairman of the Coalition for Mortgage Industry Solutions, held a Summit in Washington DC on new solutions for the mortgage crisis. Richard Rydstrom interviewed billionaire Wilbur Ross about new shared appreciation principal reduction or forgiveness modification solutions. This concept is a shared appreciation (gain) mortgage modification arrangement wherein the lender and insurer (FHA) are entitled to receive the lesser of 25% of gain appreciation or the amount forgiven or guaranteed, respectively. It would allow the FHA to guarantee $1 of existing troubled mortgages on primary residences for each $1 forgiven by the lender. The lender would be able to resell the guaranteed portion of its principal amount. That would help create “liquidity” in the mortgage loan marketplace, which is at a crisis stage at this time because “securitization” has all but ceased to exist.
The Coalition for Mortgage Industry Solutions (CMIS) supports the solutions offered, and efforts of, Wilbur Ross in guiding the industry to new sensible forms of modification solutions and liquidity based on incentives. For more information visit: http://www.procouncil.com/Summit_CMIS_Wilbur_Ross_by_Rich_Rydstrom_6-17-08.pdf .
ProCouncil™ Advisory offers a voluntary Optin framework
in which to offer such incentives. The following HotNeutral™ products offer such advantages:
OptInMods™
BKMods™
DefaultReferral™
OptInSettlement™
Shared Built In Equity Mods™
QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™
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Loss Mitigation & Incentivized Modifications™
Problem: Overwhelming Backlog of Loans In Need of Special Default Servicing Loss Mitigation
Solution: We Deliver Loss Mitigation Solutions and Principal Reduction Modifications
with Incentives for the Borrower & Lender/Servicer/Investor
The volume and numbers are overwhelming. The industry must act quickly to handle the ever-growing backlog of borrowers in need of immediate loss mitigation and new principal modification solutions. HotNeutral™ products like OptInMods™ will be used by lenders/servicers under a “confidential” and “neutral” OptInSettlement™ program offered by major lenders, servicers and consumer counselors, to negotiate interest, principal reductions (Shared Built In Equity Mods™) and repayment terms. HotNeutral™ products like QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™ can deliver true “affordability” for the borrower and supply incentives for all parties including the investor, lender, servicer and borrower. As exclusive Master Licensee of HotNeutral™ products,
a few of our new powerful tools include:
*OptInMods™
BKMods™
DefaultReferral™
*OptInSettlement™
*Shared Built In Equity Mods™
*QBieSam™ or Quarantined Built In Equity Shared Appreciation Mods™
DefaultReferral™ will be used to coordinate the referral of OptInMods™ and OptInSettlement™ programs from lenders, servicers and foreclosure attorneys as an alternative to foreclosure. HotNeutralWingSpan™ will receive and coordinate the negotiations for lenders and servicers with borrowers at its Wingspan special default servicing center, headquartered in Plano, Texas. Alternatives for costly Foreclosure require incentive programs that motivate default loss mitigation over foreclosure procedures. Our new DefaultReferral™ system is backed by our HotNeutral™/AFN®national network of legal experts. The AFN and its handpicked national legal group has the exclusive HotNeutral™ license to implement BKMods™, OptinMods™,OptinSettlements™, OptinSafeHarbors™, LitigationFreeZone™, DefaultReferral™, and Confidential Strategy™ products and solutions.
Why we are different:
Although, we are made up of industry lawyers and expert professionals, we can act as a “neutral” and “confidential” third party, or advocate, to coordinate the activities of the many players involved in any delinquency, investigation, or litigation risk, while establishing safe harbors, revised (best) practices and litigation free zones to protect you from actual and contingent risk going forward. We are the exclusive Master Licensee of HotNeutral™ litigation, risk and default servicing mitigation products, including OptInSettlement™, LitigationFreeZone™, and OptInSafeHarbors™ which are endorsed by AFN; who directly or indirectly perform over 86% of all the Foreclosure, Loss Mitigation, Bankruptcy and R.E.O. related work in the U.S.
Litigation, Risk & Default Servicing Mitigation Products, Solutions
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Incentivized Change™
Current Issue: Mortgage Servicing Practice
Confidential Strategy™
OptInSettlement™
LitigationFreeZone™
OptInSafeHarbor™
DefaultReferral™
HotNeutral™
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HotNeutral™ | OptInSettlement™ | LitigationFreeZone™
OptInSafeHarbors™ | ConfidentialStrategy™
Sbiem™ | Shared Built In Equity Mortgage™
QBieSam™ | Quarantined Built In Equity Shared Appreciation Mods™
BKMods™ | OptInMods™
DefaultReferral™
Opt In Safe Harbors™ can supply the framework for resolution within a Litigation Free Zone™ that affords the opportunity to fashion equitable reconciliation for all related participants.
Certain laws, regulations and cases have shaped the new circle of liability for the mortgage industry participants. These authorities along with new controls for best practices and proactively “revised” administration and management policies or practices, can safeguard industry participants including lenders and servicers from loss severity or litigation risk severity.
Opt In Safe Harbors™ is a voluntary outreach by each participant in an effort to seek compliance with practical and sensible management controls or the implementation of revised practices for the betterment of each participant.
One example related to Servicers/Lenders, Foreclosure and Bankruptcy, illustrates the need for Opt In Safe Harbors™ as it relates to the recent new best practices adopted (on or about June, 2008) by the NACTT Mortgage Committee in a document entitled: BEST PRACTICES FOR TRUSTEES and MORTGAGE SERVICERS IN CHAPTER 13. This is a hotly contested move by some participants in the industry. The NACTT Mortgage Committee states: “…we recognize that there may be other acceptable procedures. Therefore, we remain open to further discussion and review.”
In recent cases, Chapter 13 Trustees and (Unsigned) Debtors have standing to bring claims on a confirmed plan as a contract. RESPA and (Implied/Good Faith) contract claims against Lender/Servicers are not preempted by bankruptcy. Regulation (or plan) exemptions from providing an Annual Escrow Account “Statement” does NOT EXCUSE the Servicer from conducting Annual Escrow “Analysis” and providing “Notice” of account deficiencies or shortages at least once a year per 24 CFR Section 3500.17(a).(c)(3),(f)(5),(i)(1,2). In other recent cases, the courts have denied punitive damages claims against banks/lenders who have “revised” their practices.
As recent laws, regulations and cases have greatly enhanced liability exposure, the need for voluntary resolution of such issues or lawsuits is now paramount. Opt In Safe Harbors™ and Litigation Free Zone™ can provide the framework to such resolution.
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For information click here.
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